Ashurst and ADTLaw has advised PT Bank Negara Indonesia (Persero) Tbk (BNI) and PT Sarana Multi Infrastruktur (Persero) (PT SMI), as lenders, and BNI and Madison Pacific Trust Limited, as agents, on the USD 151.6 million project financing of a 262 MWp solar PV project and 80 MWh battery energy storage system (BESS) at Indonesia Morowali Industrial Park in Central Sulawesi.
Developed by Sembcorp Energy Indonesia and PT Sumber Energi Surya Nusantara (SESNA), an Indonesian renewable energy developer. The development is the one of the largest solar projects, as well as the one of the largest BESS projects, to have achieved financial close in Indonesia. The project is a fully behind the meter project, which will sell all of its power to a subsidiary of ASX-listed Nickel Industries Limited, to support the decarbonisation of their mining operations in Morowali. It represents a significant innovation for Indonesian renewable projects, as it is among the first utility-scale behind the meter project to achieve financial close.
A cross-jurisdictional team, led by partners Jean-Louis Neves Mandelli (Singapore) and Frédéric Draps (Jakarta), and drawn from the firm's Singapore and Jakarta offices, supported the lenders and agents as international and Indonesian law advisors on all aspects of the transaction, including project structuring, due diligence and financing arrangements.
The Singapore team included Nutsita Luengrattanakorn, Xi Lim, Milly Rawlinson and Kanageswary Rajandran. The Jakarta team included Dan Trevanion, Hakim Anantaputra and Rachelia Jumanti. Partner Jean Woo, Ernest Koh and Matthias Goh provided guidance on Singapore law related matters.
Commenting on the transaction, Jean-Louis and Fred said: "We are delighted to have supported BNI and PT SMI as well as the Sponsors on this first in kind financing for Indonesia. The combination of solar PV and battery storage at an industrial scale represents an important step forward for renewable energy in Indonesia, and we expect to see continued growth in similar projects across the region as industries work toward their decarbonisation goals."
